Business
Investors Calls For European Stocks Overhaul
The European shares sank yesterday, as investors digested a huge overhaul of British state-controlled banks Lloyds and Royal Bank of Scotland, while falling metals prices hit the mining sector.
In late morning European trade, London’s first 100 index of top shares tumbled 2.12 percent to 4,996.53 points, diving under the psychological 5,000 barrier for the first time since October 5.
Frankfurt’s Dax 30 shed 1.88 percent to 5,328.73 points and Paris CAC 40 lost 2.25 percent to 3,557.66 points near the half-way mark.the Euro stoxx 50 index of top euro zone shares plunged 2.25 percent to 2,700.75 points.
Britain said it would force Royal Bank of Scotland (RBS) and Lloyds to sell assets in a bid to revive the sector and address EU concerns, and inject another 30 billion pounds (33 billion euros, $49 billion) into the pair.
The government hopes to create new banks, private competition and guarantee more lending to business and individuals as a result of the assets sales, which comprises 10 percent of Britain’s troubled retail banking market.
“The focus has been on the banking sector with RBS taking an additional 25.5 billion pounds from the government and Lloyds confirming its rights issue,” said David Jones. “The biggest losers on the day overall, though, are mining stocks as once more concerns about global demand and weaker metal prices have hit this ever volatile sector.”
Under the plans, the British government will pump another 25.5 billion pounds into RBS, which in turn will place 282 billion pounds of highrisla debts into the government toxic asset insurance scheme.
As a result, the government economics interest in RBS will climb to 84 percent to 36.69 pence.
However, Lloyds stock rose 1.20 percent to 1.20 percent to 86.02 pence as the group also said that the record rights issue would allow it to avoid taking part in the state toxic asset insurance plans.
Lloyds unveiled fund- raising plans including a 13.5 billion pound rights issue which would represent Britain’s biggest ever sale of new shares to existing shareholders.
The government said it would take part and maintain its 43 percent stake in Lloyds.
In Asia yesterday Hong Kong ploughed 1.76 percent, the second consecutive day of falls, as investor confidence remained low despite a pick-up on Wall Street. The Japanese stock market was closed for a public holiday.
New York stocks rose in hesitant trade on Monday after a surprise profit reported by Ford Motor Co. and a strong factory sector survey boosted sentiment after last week’s drubbling.
Kenya made it a clean sweep at the Berlin Marathon with Sabastian Sawe winning the men’s race and Rosemary Wanjiru triumphing in the women’s.
Sawe finished in two hours, two minutes and 16 seconds to make it three wins in his first three marathons.
The 30-year-old, who was victorious at this year’s London Marathon, set a sizzling pace as he left the field behind and ran much of the race surrounded only by his pacesetters.
Japan’s Akasaki Akira came second after a powerful latter half of the race, finishing almost four minutes behind Sawe, while Ethiopia’s Chimdessa Debele followed in third.
“I did my best and I am happy for this performance,” said Sawe.
“I am so happy for this year. I felt well but you cannot change the weather. Next year will be better.”
Sawe had Kelvin Kiptum’s 2023 world record of 2:00:35 in his sights when he reached halfway in 1:00:12, but faded towards the end.
In the women’s race, Wanjiru sped away from the lead pack after 25 kilometers before finishing in 2:21:05.
Ethiopia’s Dera Dida followed three seconds behind Wanjiru, with Azmera Gebru, also of Ethiopia, coming third in 2:21:29.
Wanjiru’s time was 12 minutes slower than compatriot Ruth Chepng’etich’s world record of 2:09:56, which she set in Chicago in 2024.